Dubai: to audit or not to audit?

[yoyodubai]

With the inspection notices from DIEZ that everyone has been receiving, I thought it would be good to get some input from the community.

I have been in contact with IFZA and they maintain that there are no audit requirements for IFZA companies. For reference, my company was incorporated in 2022.

As part of the DIEZ inspection, I shared that I do not have audited financial statements as it was not a requirement for 2022-23, and my accounts are in the process of being finalized for 2023-24. They had no issue with this and asked me to send across the rest of the information they requested. Within an hour of submission, I received an email that I had passed their inspection....

I have looked at the corporate tax regulations, and even here there is no audit requirement if your revenue is less than AED 50 million during a relevant tax period or if you're not regarded as a QFZP (to get 0% tax).

As such, I'm not sure if an audit is actually required.

Thoughts?

 

[JackAlabama]

With the inspection notices from DIEZ that everyone has been receiving, I thought it would be good to get some input from the community.

I have been in contact with IFZA and they maintain that there are no audit requirements for IFZA companies. For reference, my company was incorporated in 2022.

As part of the DIEZ inspection, I shared that I do not have audited financial statements as it was not a requirement for 2022-23, and my accounts are in the process of being finalized for 2023-24. They had no issue with this and asked me to send across the rest of the information they requested. Within an hour of submission, I received an email that I had passed their inspection....

I have looked at the corporate tax regulations, and even here there is no audit requirement if your revenue is less than AED 50 million during a relevant tax period or if you're not regarded as a QFZP (to get 0% tax).

As such, I'm not sure if an audit is actually required.

Thoughts?

not required as of now. However one requires and tells you this, the next tells you that so you can never know.

 

[yoyodubai]

not required as of now. However one requires and tells you this, the next tells you that so you can never know.

This is the problem. Are you doing a wait and see approach, or biting the bullet and doing an audit?

 

[JackAlabama]

This is the problem. Are you doing a wait and see approach, or biting the bullet and doing an audit?

Wait and see approach as with everything, but Id have a few contacts ready to reach out just in case.

 

[ActionMan]

Bookkeep everything, leave the audit for later once the air clears. if you are not doing the former, I would advise you to do it soon.

 

[Berti]

With the inspection notices from DIEZ that everyone has been receiving, I thought it would be good to get some input from the community.

I have been in contact with IFZA and they maintain that there are no audit requirements for IFZA companies. For reference, my company was incorporated in 2022.

As part of the DIEZ inspection, I shared that I do not have audited financial statements as it was not a requirement for 2022-23, and my accounts are in the process of being finalized for 2023-24. They had no issue with this and asked me to send across the rest of the information they requested. Within an hour of submission, I received an email that I had passed their inspection....

I have looked at the corporate tax regulations, and even here there is no audit requirement if your revenue is less than AED 50 million during a relevant tax period or if you're not regarded as a QFZP (to get 0% tax).

As such, I'm not sure if an audit is actually required.

Thoughts?

May I ask how did you receive the inspection notice? Email? Physical letter? Via your setup agent (if any)?

 

[yoyodubai]

May I ask how did you receive the inspection notice? Email? Physical letter? Via your setup agent (if any)?

Email. Just randomly received one early morning.

 

[JackAlabama]

Email. Just randomly received one early morning.

yes it comes right out of the blue. You go peacefully your day not suspecting anything and the hammer falls down.

 

[PiersBlack]

With the inspection notices from DIEZ that everyone has been receiving, I thought it would be good to get some input from the community.

I have been in contact with IFZA and they maintain that there are no audit requirements for IFZA companies. For reference, my company was incorporated in 2022.

As part of the DIEZ inspection, I shared that I do not have audited financial statements as it was not a requirement for 2022-23, and my accounts are in the process of being finalized for 2023-24. They had no issue with this and asked me to send across the rest of the information they requested. Within an hour of submission, I received an email that I had passed their inspection....

I have looked at the corporate tax regulations, and even here there is no audit requirement if your revenue is less than AED 50 million during a relevant tax period or if you're not regarded as a QFZP (to get 0% tax).

As such, I'm not sure if an audit is actually required.

Thoughts?

Did you send them non-audited financial statements OR you didn't send any financial statements at all (because you were still in the process of finalizing them)?

 

[alain]

yes it comes right out of the blue. You go peacefully your day not suspecting anything and the hammer falls down.

Most often like this if it has something to do with authorities and the tax office

 

[JackAlabama]

Most often like this if it has something to do with authorities and the tax office

nope... not in these cases.